I was suprised an agent told me he had a death claim paid last month on a final expense policy were the guy gave him a void check and post dated the app 30 days and he died one day before the policy issue date. I didn't think you gave a conditional receipt unless you got the first months premium and when you post date the issue date and the client dies before the issue date on the policy why would it pay?
Do You Leave a Conditional Receipt if Client Only Gives You Void Check and Post Dates Issue Date 30
- Thread starter term1
- Start date
- 680
Payment is the 'consideration' that binds a contract, so sounds odd...Hope he wrote $0 paid with app void check on that reciept
- 7,041
Was it 5 star by chance?
- 27,049
- 847
The OP is referencing a conversation I had with him.
I had a client whom I wrote a policy for on 05/28/14. The client gave a void check and signed a PAC form. The initial Draft was set for 06/03/14. The client called the next day wanting to cancel because he said he and his family were moving and he couldn't pay the premium and the movers.
I told him not a problem that I would call the carrier, Americo, and have the Draft changed to 07/03/14.
I received a call 07/02/14 from the clients daughter saying her father passed away that night from pneumonia.
I notified Americo and they stopped the Draft for 07/03/14. I asked about whether Americo would pay the claim if there was nothing in the investigation that came back negative since they had not received a payment.
Americo said that since a PAC form was on file and the policy was APPROVED before the client passed away they would honor the claim if no fraud was found.
I told the daughter to get on her father's Dr's case and expedite the medical records to Americo.
They just finished the investigation. He was a smoker and it was marked on the application.
He caught pneumonia and died. No fraud found. Paid the claim according to Americo 08/11/14.
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I never said I post dated an application.
I had a client whom I wrote a policy for on 05/28/14. The client gave a void check and signed a PAC form. The initial Draft was set for 06/03/14. The client called the next day wanting to cancel because he said he and his family were moving and he couldn't pay the premium and the movers.
I told him not a problem that I would call the carrier, Americo, and have the Draft changed to 07/03/14.
I received a call 07/02/14 from the clients daughter saying her father passed away that night from pneumonia.
I notified Americo and they stopped the Draft for 07/03/14. I asked about whether Americo would pay the claim if there was nothing in the investigation that came back negative since they had not received a payment.
Americo said that since a PAC form was on file and the policy was APPROVED before the client passed away they would honor the claim if no fraud was found.
I told the daughter to get on her father's Dr's case and expedite the medical records to Americo.
They just finished the investigation. He was a smoker and it was marked on the application.
He caught pneumonia and died. No fraud found. Paid the claim according to Americo 08/11/14.
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I never said I post dated an application.
- 17,255
5-Star covers with just a voided check and future draft date. I didn't know Americo did.
- 20,057
Americo has always told me that the person is covered from the date they approve. Fortunately I've had to test that. Seems that someone did and they paid.
I am shocked at that outcome.
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- #8
- 27,049
That is awesome that they paid the claim. post date app did not sound right.
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- #10
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